Arms Length Transaction Question
I have a client who is selling a house to his son. Will she be able to apply the cap gain exemption in this arms-length transaction?
Example:
Sale price: $1,000,000
Basis: $500,000
Single Tax Payor Exemption: $250,000 (because she has lived in the house for a qualifying amount of time)
Can she exclude the $250,000 from her $500,000 cap gain?
